Accounting records for RockfordRockford Corporation yield the following data for
ID: 2528432 • Letter: A
Question
Accounting records for
RockfordRockford
Corporation yield the following data for the year ended
JuneJune
3030?,
20162016
?(assume sales returns are? non-existent):
Requirements
1.
Rockford'sRockford's
2.
Report ending? inventory, sales, cost of goods? sold, and gross profit on the appropriate financial statement.
Requirement 1. Journalize
Rockford'sRockford's
inventory transactions for the year under the perpetual system. ?(Record debits? first, then credits. Exclude explanations from any journal? entries.)
The first transaction is the purchase of inventory. Record the entry.
Inventory, June 30, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,000
Purchases of inventory (on account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57,000
Sales of inventory – 84% on account; 16% for cash (cost $43,000) . . . .
92,000
Inventory at FIFO, June 30, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29,000
1.
JournalizeRockford'sRockford's
inventory transactions for the year under the perpetual system.2.
Report ending? inventory, sales, cost of goods? sold, and gross profit on the appropriate financial statement.
Explanation / Answer
Accounts titles debit credit Merchandise inventory 57000 Accounts payable 57000 Purchase of inventory on account Cost of goods sold 43000 Merchandise inventory 43000 Cost of goods sold during the year Cash 14720 Accounts Receivable 77280 Sales 92000 Sales of goods No entry required for closing inventory